Brazil economic activity posts solid start to third quarter

People shop at the Municipal Market of Sao Paulo in downtown Sao Paulo, Brazil September 6, 2017. REUTERS/Paulo Whitaker

SAO PAULO (Reuters) - Economic activity in Brazil expanded at a faster pace than expected in July, suggesting the economy got off to a solid start to the third quarter despite a string of mixed reports.

Economic activity rose 0.41 percent in July after seasonal adjustments. The median forecast in a Reuters poll indicated a 0.10 percent monthly advance in July.

The central bank also revised the previous month’s reading to show a 0.55 percent increase, bigger than the originally reported 0.50 percent rise.

That should bring some solace to those worried that a nascent economic recovery may have hit a bump following tepid readings on retail sales and services activity.

Latin America’s largest economy has been crawling out of the deepest recession in a century, which drove inflation to 18-year lows and allowed the central bank to cut interest rates to the lowest levels since 2013.